December 15, 2008
The Senate's inability to throw a lifeline to Detroit has compelled the Bush administration to step in with loans to the automakers to prevent an economic calamity. Nobody likes rewarding General Motors and Chrysler for failure. But the economy, which already has lost nearly two million jobs this year, can't withstand the body blow from the collapse of one or more of the Big Three. It could result in the loss of three million more jobs. In Pennsylvania, which has been hit hard by job losses and mortgage foreclosures, about 120,000 workers are tied to the auto industry.
December 10, 2008 |
Just in time for the holidays, here's the first installment in a maybe not-so-fanciful look at how the economic woes might affect North Pole Toys LLC. WASHINGTON - Santa Claus, Mrs. Claus and elf union leaders genuflected before Congress yesterday and begged for an emergency $18 billion bailout. Claus painted a bleak picture of his toy manufacturing and delivery company during an unprecedented - and sometimes volatile - three-hour session. "I'm not going to lie to you, folks," Claus said at the start of the hearing.
September 22, 2008 |
Sen. Arlen Specter yesterday called for Congress to avoid a "rush to judgment" in considering legislation to solve the country's financial problems. Specter (R., Pa.) said he shared the public's "skepticism about legislation which will let Wall Street off the hook and pay insufficient attention to Main Street, middle class Americans. " In a letter to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell, Specter wrote that he was concerned that Congress was rushing to complete a $700 billion-plus bailout package before adjourning this Friday.
November 23, 2008
The frustrating part about auto executives' presumptuous attitude toward a taxpayer bailout is that they are probably right - they are too big to fail. But the chiefs of General Motors, Chrysler and Ford didn't help their cause by arriving in Washington in private jets to ask Congress for a handout. The move typified the industry's cluelessness. Lawmakers didn't promise to rescue Detroit, but they didn't rule out a bailout, either. Congressional leaders said they might return to Washington on Dec. 8 to consider $25 billion in emergency aid, provided the automakers come up with a workable plan to become competitive.
June 15, 2011
A new Federal Communications Commission report that criticizes the idea of a federal bailout of failing media companies makes sense to journalists who fear such an effort might cost more than it's worth. The objectivity that the public wants from news agencies would be threatened if the bailout led to a cozy relationship between government and the Fourth Estate. Of course, conservatives fear public funding would free media no longer in need of as much advertising revenue to be more liberal.
January 28, 2009
Everyone, it seems, is looking for a bailout. Many leading financial firms have already received billions from the federal government, and some are already back for a second helping. Likewise, many states and cities are counting on stimulus funds from the feds to help balance their budgets. So let's remember that with any and all of the recommendations for the latest $825 billion stimulus package - whether it's the increased spending favored by Democrats or the tax cuts preferred by Republicans - the money is all borrowed and will have to be paid back by taxpayers.
September 21, 2008
The unprecedented taxpayer bailout of Wall Street and the banking industry is as necessary as it is infuriating. Spawned by greed and reckless lending, the worst financial crisis in decades has left policymakers without any good options for fixing the mess. The Bush administration's rescue plan, to be presented to Congress in the next few days, will put taxpayers on the hook for hundreds of billions of dollars. Your grandkids will be paying that bill because Wall Street titans were more interested in seven- and eight-figure bonuses than in sound investment practices.
July 15, 1998 |
There will be no state bailout for financially sinking Allegheny Health, Education and Research Foundation, but Gov. Ridge and Mayor Rendell are speeding up $11 million in state and city payments to keep the foundering health system afloat. The accelerated money - $9 million in state welfare and education dollars, $2 million in city mental health money - is being fast-tracked for payment to system hospitals next week, about a week earlier than due. The effort, said Rendell, "might buy some time" to avoid system-wide failure and the loss of thousands of Philadelphia jobs.
April 16, 2004
Mayor Street just gave PGW a pardon worth $90 million, and pushed back the repayment of a loan worth $45 million to the year 2008. While it'll be a pleasure to know that Street will be leaving office in 2008, it still puts a huge hole in his budget while virtually wiping out what little was left of that huge surplus the city had not too long ago. It's illogical to think that the preservation of the value of a grotesquely mismanaged public...
December 21, 2008
President Bush's bailout of General Motors and Chrysler prevents an economic calamity, for now, and dumps the responsibility on his successor to enforce the vague terms. In agreeing to lend the automakers $17.4 billion, Bush really had no options. GM and Chrysler would have run out of money by the end of the month, a failure that could have resulted in the loss of up to three million middle-class jobs next year. On top of the two million jobs lost this year, such a blow would have deepened a recession that is already the worst in a quarter-century.